STATE OF NORTH CAROLINA)            STOKES COUNTY

                                                            )           WATER/SEWER AUTHORITY

                                                            )           DANBURY, NORTH CAROLINA

COUNTY OF STOKES                   )           JUNE 6, 2012

The Stokes County Water and Sewer Authority met in the Third floor Conference Room of the Ronald Reagan Building on Thursday, June 6, 2012 at 3:00 p.m. with the following members present:

John Hawkins, Chairman

Worth Hampton, Vice Chairman

Arzelle Montgomery, Member

Scott Snow, Member

 

Also present were:

Mark Delehant, Public Works Director, Ex- Officio Member

Julia Edwards, Finance Director

Darlene Dill, Secretary

Rex Baker, Citizen

 

Members absent:

Wayne Smart, Member

 

CALL OF MEETING TO ORDER

Chairman Hawkins called the meeting to order. 

 

 

APPROVAL OF MINUTES

 

  Chairman Hawkins asked if there were any corrections to the minutes of the March 8, 2012 meeting.  No corrections or additions were noted. Mr. Montgomery made the motion to approve the minutes, Mr. Hampton seconded and the motion was unanimously approved.

 

RATE INCREASE

            Mr. Delehant informed the board that the City of Winston Salem was increasing the cost of water by 10% effective September 2012.  Mr. Delehant proposed that the board take action to increase the rates by the same amount to customers.  The proposed rate increase would change the availability fee from $18.00 to $19.00 and the consumption fee of $5.70 per 1,000 gallons to $6.70 per 1,000 gallons used. (See attachment #1). Chairman Hawkins made a motion to increase the rates effective September 15, 2012.  Mr. Montgomery seconded and the motion was carried unanimously.

 

PROPOSED BUDGET FY 2012-2013

 

            Ms. Edwards presented her proposed budget packet to the board for the 2012-2013 Fiscal Year. (See attachment #2).  Ms. Edwards explained that the proposed budget included the rate increase effective September 15, 2012.  She also highlighted the increases in the budget due to Health and Dental Insurance for County employees and the decrease due to the proposed audit contract with Martin and Starnes.  The proposed budget also contained Budget Ordinance Amendment #1, (See attachment #3), which would appropriate and transfer funds for expenditures for remainder of the 2011-2012 fiscal year.  Mr. Hampton made a motion to approve the Proposed Budget for 2012-2013 and Budget Ordinance Amendment #1.  Mr. Montgomery seconded and the motion carried unanimously.

 

2011-2012 AUDIT CONTRACT

           

            Ms. Edwards informed the board that she had sent out ten (10) RFP’s for auditing services that is performed for the SCWSA each year.  She received two (2) quotes back.  Martin Starnes & Associates proposed a three (3) year contract at the cost of $3,000.00 per year.  S. Preston Douglas & Associated, LLP proposed a three (3) year contract at the cost of $5,500.00 per year. (See attachment #4).  Ms. Edwards recommended that the board approve the services provided by Martin Starnes & Associates.  Mr. Hampton made a motion to approve the audit contract with Martin Starnes & Associates.  Chairman Hawkins seconded and the motion was carried unanimously.

 

DISCUSSION OF OLD BUSINESS

 

The first order of business was the TOWN OF WALNUT COVE WATER AGREEMENT that Mr. Delehant had presented the Board at the March 8, 2012 meeting. Mr. Delehant again summarized the contract, he stated that the SCWSA would bill the Town of Walnut Cove $2755.78 (Two thousand seven hundred fifty five dollars and 78/100) per month. Fee would include the first 500,000 gallons of water. All water in excess of the 500,000 gallons will be billed at a rate of $4.15 (four dollars and 15/100) per 1000 gallons. Also, that any increase by the City of Winston Salem would be adjusted at such given time that it occurs.  Mr. Delehant informed the board that he had obtained legal review of the contract and had obtained information regarding the SCSWA Boards’ area of authority to enforce the contract or to force the Town of Walnut Cove to sign by restricting their ability to use the water by Kara Millonzi, a Municipality and Water Authority Attorney with the UNC School of Local Governments. (See attachment #5). Mr. Delehant informed the board that without a contract on file that the SCWSA was within all legal rights to proceed with the proposed agreement and stipulations if the agreement was not signed by the Town of Walnut Cove.  Mr. Delehant also presented the board with a schedule of the Town of Walnut Cove’s current water rates. (See attachment #6).  Chairman Hawkins suggested that the board proceed with a meeting with the County Manager and then to the Stokes County Board of Commissioners.  Mr. Montgomery made a motion that the suggested course of action be approved.  Mr. Hampton seconded and the motion carried unanimously.   Mr. Delehant was instructed to schedule a meeting with the County Manager.

 

DELINQUENT ACCOUNTS

Chairman Hawkins inquired about the status of the delinquent accounts and their status.  Secretary Dill informed the board that payment had been received from two (2) delinquent accounts (See attachment #7). Secretary Dill informed the board that further recoveries were unlikely for the remaining of the year due to most tax returns had already been processed for this year.  Interstate Credit Collection and Data Max Corporation would continue to file each month and the board was still obligated to pay the 25% fee required.  The board also inquired about the situation with Ms.Lankford and Ms. Shelton regarding their request for connection to the system, Secretary Dill informed the board that no further correspondence had been made.

 

SAURATOWN FIRE STATION WATERLINE EXTENSION

 

            Mr. Delehant informed the board that the County Manager was working with the City of King regarding the contract (See attachment #8). Mr. Delehant stated on behalf of Mr. Morris, County Manager that a resolution to the situation should be in place by the next regularly scheduled meeting of the SCWSA.

 

DAN RIVER PROPERTY OWNED BY SCWSA

 

            The board observed the map, deed, and property card (See attachment #9).  The question as to whether the land was owned by the SCWSA and as to what, if any stipulations were present in the deed was confirmed by the board.  The previous discussion as to possibly selling this land as a revenue source was determined not to be in the best interest of the SCWSA.

 

APPOINTMENT OF NEW BOARD MEMBER

 

The board discussed the decision to replace the position on the SCWSA Board vacated by Mr. Wayne Smart. Mr. Montgomery stated that he had spoken with Ronald Powell, a resident of Germanton.  Mr. Powell had agreed to fill the vacated position if appointed by the Stokes County Board of Commissioners.  Mr. Montgomery made a motion to recommend Mr. Ronald Powell to the Board of Commissioners as replacement for Mr. Wayne Smart.  Chairman Hawkins seconded and the motion was carried unanimously.

 

ITEMS OF GENERAL CONCERN

 

            Mr. Rex Baker once again stated his concern and desire to see the four (4) mile gap in water lines between the bridge on Hwy. 311 and the Town of Madison.  Mr. Baker requested that the SCWSA pursue closing the gap and have a continuous water line for safety and emergency purposes.  Chairman Hawkins stated that currently the financial status of the SCWSA is not in a position to take on this project at this time. After further discussion relating to this matter, the items was tabled and possibly left open for further discussion in the future.

 

NEXT SCHEDULED MEETING

            Next scheduled meeting will be September 13, 2012 at 3:00, in the 3rd floor conference room. Chairman Hawkins also informed the Board of a potential “Emergency Meeting,” if there was a need regarding the water agreement with the Town of Walnut Cove.  With no further business to discuss Chairman Hawkins made the motion to adjourn, Mr. Snow seconded and the motion was unanimously approved.

 

 

___________________________                              ____________________________

Darlene Dill, Secretary                                                John Hawkins, Chairman